TORONTO C.A. Bancorp Inc. (“the
Company”) is pleased to announce that it has provided a $10 million
subordinated loan facility (“Subordinated Facility”) to Charter Realty
Holdings Ltd., $4.5 million of which was drawn as of March 30th, 2007.
The Subordinated Facility is subordinated to a first mortgage loan from
a Canadian chartered bank and a loan facility from KingSett Capital.
Outstanding principal amounts on the Subordinated Facility earn
interest at a rate of 12% per annum, payable monthly. The Subordinated
Facility has a maximum term of two years.
The
Company is also pleased to announce that its wholly-owned subsidiary
C.A. Realty Management Inc. (“Realty Management”) and its
majority-owned subsidiary Charter Realty Holdings Inc. (“Charter”) have
entered into a management agreement (“Management Agreement”) whereby
Realty Management will provide Charter with ongoing strategic,
advisory, asset management and administrative services in return for an
annual management fee of 0.30% based on the adjusted book value of
Charter’s assets and a fee of 0.50% of the costs of any acquired
properties.
Details of the Management Agreement and Subordinated Facility are available on SEDAR.
C.A.
Bancorp Inc.: C.A. Bancorp Inc., a Toronto-based merchant bank and
alternative asset investment manager, is involved in transactions with
both private and public companies across a range of industries,
predominantly in Canada, with a specific focus on mid-market
investments in private equity, real estate, infrastructure and
financial services. C.A. Bancorp conducts its business through two
areas of focus: direct investing, and fund management for the
institutional, high-net-worth and retail markets.
Charter
Realty Holdings Ltd.: Charter Realty Holdings Ltd. is focused on
acquiring a portfolio of retail and mixed-use retail real estate
comprised of stable cash flow and value-add properties from both
primary and secondary markets throughout Canada, with the principal
goal of generating a reliable and growing yield for its investors. The
Company owns four commercial real estate properties located in Ontario
and Quebec. Charter trades on the TSX Venture Exchange under the symbol
CRH and is controlled by C.A. Bancorp Inc. through its 57% holdings in
Charter’s outstanding common shares. More information : Mark Gardhouse, President or Paolo De Luca, Chief Financial Officer 1-866-388-5985 Fax: 416-364-2398 info@cabancorp.com www.cabancorp.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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